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The Bank of England’s Financial Policy Committee said on 30 September that the likelihood of interconnected financial vulnerabilities crystallising had risen. It cited sovereign debt, risky asset valuations and risky credit, alongside cyber and operational risks linked to frontier AI.
The committee kept the UK countercyclical capital buffer at its neutral 2% setting. It said UK banks remained well capitalised and liquid, while parts of private credit remained vulnerable to tighter financing. The Bank expects to consult on leverage-ratio reforms in early 2027.